Blackhawk Bancorp Earns $2.62 Million in First Quarter 2022; First Quarter Results Highlighted by Strong Loan Growth

Rhea-AI Summary

Blackhawk Bancorp reported a net income of $2.62 million for Q1 2022, marking a 10% decrease from the previous quarter and a 24% decline year-over-year. Diluted EPS fell to $0.92. Key factors included a $503,000 drop in mortgage loan income due to rising interest rates and a slowing housing market, partially offset by reduced salaries. Loans held for investment increased by 18.4% annualized, totaling $716 million. Despite strong loan production, the outlook faces inflation and potential recession risks. Total deposits grew by $131.4 million to $1.20 billion.

Positive

• Total loans held for investment increased by $31.3 million during the quarter, or 18.4% annualized.
• Total deposits grew by $131.4 million to $1.20 billion compared to $1.07 billion a year earlier.
• No provision for loan losses was recorded for Q1 2022.
• Strong growth in commercial and CRE loan categories.

Negative

• Net income fell by 10% from the previous quarter and 24% year-over-year.
• Diluted EPS dropped by $0.10, or 10%, compared to both the linked quarter and the prior year.
• Operating expenses increased by $460,000, or 5%, compared to Q1 2021.
• Decrease in net interest income by $61,000 compared to the first quarter of the prior year.

BELOIT, WI / ACCESSWIRE / April 20, 2022 / Blackhawk Bancorp, Inc. (OTCQX:BHWB), (the "Company") parent company of Blackhawk Bank (the "Bank"), today reported net income of $2.62 million for the quarter ended March 31, 2022, a 10% decrease from the $2.91 million earned the in the preceding quarter, and a 24% decrease compared to the $3.43 million earned during the first quarter of 2021. Diluted Earnings per Share (EPS) for the current quarter was $0.92, a decrease of $0.10, or 10%, compared to both the linked quarter and the quarter ended March 31, 2021. The first quarter of 2022 results produced a Return on Average Equity (ROAE) of 10.82% and a Return on Average Assets (ROAA) of 0.80%.

The decrease in earnings during the current quarter, compared to the linked quarter, included a $503,000 decrease in income from the sale and servicing of mortgage loans as a result of rising interest rates and a slowing housing market. This was partially offset by a $181,000 decrease in salaries and employee benefits.

The decrease in net income for the first quarter of 2022, compared to the first quarter of the prior year, included a $1.18 million decrease in income from the sale and servicing of mortgage loans and a $460,000 increase in operating expenses, which was partially offset by a $500,000 decrease in provision for loan losses.

"Our first quarter results reflect the continued successful implementation of our growth strategies, which resulted in the expansion of the loan portfolio," said Todd James, Chairman and CEO. "Operating results for the first quarter were strong, benefitting from Paycheck Protection Program ("PPP") loan fee income and low credit costs. As we continue to wind down from the unprecedented events of the pandemic, and PPP loan forgiveness nears its conclusion, we have shifted our efforts towards our strategic growth plan of enhancing product offerings, improving the effectiveness and efficiency of delivery channels and pursuing organic growth opportunities within our markets."

"We had another solid quarter of loan production, with good growth in commercial and CRE loan categories," James continued. "As a result, loans held for investment excluding PPP grew by $31.3 million during the quarter, or 18.4% annualized. We are achieving strong growth in our target markets of RV parks and campgrounds and local manufacturers. While our pipeline remains strong and we are optimistic about our business outlook in the near term, we remain cautious about our growth prospects in the long term, as inflation concerns and a possible recession could impact loan growth towards the end of the year."

First Quarter 2022 Financial Highlights (at or for the three months ended March 31, 2022)

• Net income of $2.62 million, or $0.92 per diluted share, compared to $3.43 million, or $1.02 per diluted share, in the first quarter of 2021.
• Net interest margin of 3.13%, compared to 3.12% in the preceding quarter and 3.52% in the first quarter a year ago.
• Annualized return on average assets was 0.80%, compared to 1.16% in the first quarter of 2021.
• Annualized return on average equity was 10.82%, compared to 12.44% in the first quarter a year ago.
• Excluding Paycheck Protection Program (PPP) loans, loans held for investment increased $103.6 million, or 16.9% to $716.0 million at March 31, 2022, compared to $612.5 million a year ago.
• Total deposits grew by $131.4 million to $1.20 billion at March 31, 2022 compared to $1.07 billion a year earlier.
• Allowance for loan losses to total loans of 1.51% at quarter end.
• Nonperforming assets to total assets of 0.52% at March 31, 2022 compared to 0.69% a year ago.
• On February 16, 2022, paid a quarterly cash dividend of $0.12 per share, marking the 31 ^st consecutive quarterly cash dividend paid, and a 9% increase compared to the last 8 quarterly cash dividends.

Net Interest Income

Net interest income totaled $9.66 million for the quarter ended March 31, 2022, which was essentially flat compared to the fourth quarter of 2021, and a decrease of $61,000, or less than one percent, compared to the first quarter of the prior year. Interest income benefitted from the recognition of PPP loan fees as loans are forgiven by the SBA. During the first quarter of 2022, the Company recognized PPP fee income of $539,000 compared to $535,000 the most recent quarter and $795,000 the first quarter of 2021. As of March 31, 2022, there was $366,000 of net deferred PPP fee income remaining.

The Company's net interest margin was 3.13% for the first quarter of 2022, compared to 3.12% for the quarter ended December 31, 2021, and 3.52% for the first quarter of 2021. "While loan growth and loan yields are starting to improve, the influx of deposits over the last year has hampered NIM expansion. Going forward, we plan to capitalize on new loan growth by converting some of those lower yielding investments into the loan portfolio at higher yields," said James. "Additionally, with the recent rate increase enacted by the Federal Reserve at the end of the quarter, we anticipate improvement in our NIM in future quarters, especially with the possibility of additional rate increases throughout the year."

The tax-equivalent yield on earning assets and cost of deposits remained even for the first quarter of 2022, compared to the fourth quarter of 2021, at 3.32% and 0.11%, respectively. While earning assets dropped 41 basis points compared to 3.73% for the first quarter of 2021, and the cost of deposits decreased five basis points compared to 0.16% in the first quarter of 2021.

In addition, interest expense on subordinated debentures increased by $154,000, reflecting the issuance of $15.0 million of subordinated debt, which was used to fund the share repurchase in the second quarter of 2021. Average total deposits for the first quarter of 2022 increased by $148.3 million to $1.19 billion compared to $1.05 billion in the first quarter of 2021. Average total loans for the first quarter of 2022 increased by $29.0 million, or 4%, compared to the prior year's first quarter. Excluding PPP loans, average total loans increased by $51.9 million, or 8%, to $697.8 million compared to $645.9 million for the quarter ended December 31, 2021 and increased $98.2 million, or 16%, compared to $599.5 million for the first quarter of 2021.

Provision for Loan Losses and Asset Quality

Due to the improvement in economic conditions, especially as it related to potential losses associated to the pandemic, along with the overall quality of the loan portfolio, the Company recorded no provision for loan losses for the quarters ended March 31, 2022, and December 31, 2021. This compared to a $500,000 provision for loan losses for the quarter ended March 31, 2021.

Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $6.9 million as of March 31, 2022, as compared to $7.3 million as of December 31, 2021, and $8.4 million at March 31, 2021. At March 31, 2022, the ratio of nonperforming loans to total loans equaled 0.93%, as compared to 1.02% at December 31, 2021, and 1.17% at March 31, 2021.

The allowance for loan losses to total loans was 1.51% as of March 31, 2022, compared to 1.57% at December 31, 2021, and 1.56% as of March 31, 2021. The Company expects that the allowance for loan losses will continue to shift downward as it reflects a more moderate allowance level compared to the higher allowance levels held during the course of the pandemic. The allowance for loan losses to nonperforming loans increased to 162.0% as of March 31, 2022, compared to 153.0% at December 31, 2021, and 133.0% at March 31, 2021.

Noninterest Income and Operating Expenses

Noninterest income for the quarter ended March 31, 2022, totaled $3.92 million, a $601,000 decrease compared to $4.52 million the prior quarter and a $1.12 million decrease from the $5.04 million recorded in the first quarter of 2021. The net revenue from the sale and servicing of mortgage loans decreased $503,000 and debit card interchange fees decreased $89,000 compared to the fourth quarter of 2021. The decline in noninterest income compared to the first quarter of 2021 was primarily due to a $1.18 million decrease in revenue from the sale and servicing of mortgage loans, which was partially offset by a $223,000 increase in deposit service fees.

Operating expenses for the quarter ended March 31, 2022, totaled $10.17 million, a decrease of $334,000, or 3%, compared to the quarter ended December 31, 2021, and an increase of $460,000, or 5%, compared to the first quarter of 2021. The increase compared to the first quarter of 2021 included a $488,000 increase in salary and employee benefits.

Capital

Tangible book value per share was $26.58 at March 31, 2022, compared to $31.41 at December 31, 2021 and $29.40 at March 31, 2021. The decrease in tangible book value per share during the current quarter was primarily due to a $15.7 million decrease in accumulated other comprehensive income ("AOCI") related primarily to an increase in the unrealized loss on available for sale securities reflecting the increase in interest rates during the current quarter. Excluding AOCI, tangible book value per share was $31.27 at March 31, 2022, an increase of $0.63 and $3.29 compared to December 21, 2021 and March 31, 2021, respectively.

About Blackhawk Bancorp

Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin, and is the parent company of Blackhawk Bank. The combined entity operates twelve full-service banking centers located in Rock County, Wisconsin, and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. The Company offers a variety of value-added consultative services to its business customers and their employees related to the financial products it provides.

Disclosures Regarding non-GAAP Measures

This report refers to financial measures that are identified as non-GAAP that the Company believes help to evaluate and measure the Company's performance, including the presentation of the net interest margin ratio and efficiency ratio calculations on a taxable-equivalent basis. Non-GAAP measures are also used to assist investor comparison by identifying nonrecurring events such as acquisition-related expenses, nonrecurring securities gains and the impact such items have on the performance measures of return on average assets, return on average equity, diluted earnings per share, and the efficiency ratio. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.

Forward-Looking Statements

When used in this communication, the words "believes," "expects," "likely", "would", and similar expressions are intended to identify forward-looking statements. The Company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions particularly in the Company's markets; potential deterioration in real estate values, success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which Blackhawk or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the Company or its customers. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.

Further information is available on the Company's website at www.blackhawkbank.com .

Blackhawk Bancorp, Inc.

Todd J. James, Chairman & CEO
tjames@blackhawkbank.com
Phone: (608) 364-8911

Matthew McDonnell, SVP & CFO
mmcdonnell@blackhawkbank.com

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
MARCH 31, 2022 AND DECEMBER 31, 2021
(UNAUDITED)

		March 31,				December 31,
Assets		2022				2021
		(Dollars in thousands, except
		share and per share data)
Cash and due from banks		$	13,413			$	10,846
Interest-bearing deposits in banks and other institutions			40,189				55,720
Total cash and cash equivalents			53,602				66,566
Certificates of deposit in banks and other institutions			1,914				2,161
Equity securities at fair value			2,500				2,553
Securities available-for-sale			481,920				504,341
Loans held for sale			1,711				2,585
Federal Home Loan Bank stock, at cost			2,150				2,150
Loans, less allowance for loan losses of $10,995 and $11,125
at March 31, 2022 and December 31, 2021, respectively			714,745				696,292
Premises and equipment, net			20,670				20,778
Goodwill and core deposit intangible			11,536				11,628
Mortgage servicing rights			4,042				3,833
Cash surrender value of bank-owned life insurance			11,526				11,440
Other assets			24,327				16,911
Total assets		$	1,330,643			$	1,341,238
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing		$	380,292			$	380,601
Interest-bearing			819,335				816,440
Total deposits			1,199,627				1,197,041
Subordinated debentures and notes, net of issuance costs (including $1,031
at fair value at March 31, 2022 and December 31, 2021)			19,812				19,775
Senior secured term note			10,889				11,278
Other borrowings			5,000				5,000
Other liabilities			7,414				6,985
Total liabilities			1,242,742				1,240,079
Stockholders' equity
Common stock, $0.01 par value, 10,000,000 shares authorized;
3,506,214 and 3,479,069 shares issued as of March 31, 2022 and
December 31, 2021, respectively			35				35
Additional paid-in capital			36,115				35,890
Retained earnings			84,261				81,987
Treasury stock, 632,686 and 630,991 shares at cost as of March 31, 2022
and December 31, 2021, respectively			(19,010	)			(18,952	)
Accumulated other comprehensive income (loss)			(13,500	)			2,199
Total stockholders' equity			87,901				101,159
Total liabilities and stockholders' equity		$	1,330,643			$	1,341,238

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

		Three months ended March 31,
		2022				2021
		(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans		$	7,808			$	8,155
Interest and dividends on available-for-sale securities:
Taxable			2,068				1,721
Tax-exempt			365				384
Interest on deposits in other financial institutions			24				41
Total interest income			10,265				10,301
Interest Expense:
Interest on deposits			322				415
Interest on subordinated debentures			195				41
Interest on senior secured term note			91				107
Interest on other borrowings			-				20
Total interest expense			608				583
Net interest income before provision for loan losses			9,657				9,718
Provision for loan losses			-				500
Net interest income after provision for loan losses			9,657				9,218
Noninterest Income:
Service charges on deposits accounts			913				690
Net gain on sale of loans			1,146				2,362
Net loan servicing income			402				369
Debit card interchange fees			1,079				1,027
Net gains on sales of securities available-for-sale			-				-
Net other gains (losses)			(4	)			42
Increase in cash surrender value of bank-owned life insurance			86				87
Change in value of equity securities			(64	)			(35	)
Other			360				493
Total noninterest income			3,918				5,035
Noninterest Expenses:
Salaries and employee benefits			6,222				5,734
Occupancy and equipment			1,212				1,182
Data processing			708				591
Debit card processing and issuance			513				425
Advertising and marketing			108				99
Amortization of core deposit intangible			96				104
Professional fees			389				390
Office Supplies			86				77
Telephone			140				141
Other			697				968
Total noninterest expenses			10,171				9,711
Income before income taxes			3,404				4,542
Provision for income taxes			785				1,112
Net income		$	2,619			$	3,430

Key Ratios
Basic Earnings Per Common Share		$	0.92			$	1.02
Diluted Earnings Per Common Share			0.92				1.02
Dividends Per Common Share			0.12				0.11
Net Interest Margin (1)			3.13	%			3.52	%
Efficiency Ratio (1)(2)			74.35	%			65.53	%
Return on Assets			0.80	%			1.16	%
Return on Common Equity			10.82	%			12.44	%

(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of the net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin ratio is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.

(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on a TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on the increases in cash surrender value of bank-owned life insurance.

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

		For the Quarter Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
		2022				2021				2021				2021				2021
		(Dollars in thousands, except per share data)
Interest Income:
Interest and fees on loans		$	7,808			$	7,876			$	8,180			$	8,621			$	8,155
Interest on available-for-sale securities:
Taxable			2,068				1,960				1,830				1,759				1,721
Tax-exempt			365				369				419				378				384
Interest on deposits in other financial institutions			24				33				61				48				41
Total interest income			10,265				10,238				10,490				10,806				10,301
Interest Expense:
Interest on deposits			322				319				421				421				415
Interest on subordinated debentures			195				196				195				117				41
Interest on senior secured term note			91				98				103				104				107
Interest on other borrowings			-				-				-				-				20
Total interest expense			608				613				719				642				583
Net interest income before provision for loan losses			9,657				9,625				9,771				10,164				9,718
Provision for loan losses			-				-				-				-				500
Net interest income after provision for loan losses			9,657				9,625				9,771				10,164				9,218
Noninterest Income:
Service charges on deposits accounts			913				901				787				663				690
Net gain on sale of loans			1,146				1,865				2,147				2,217				2,362
Net loan servicing income			402				186				90				36				369
Debit card interchange fees			1,079				1,168				1,146				1,218				1,027
Net gains on sales of securities available-for-sale			-				-				-				-				-
Net other gains (losses)			(4	)			5				52				7				42
Increase in cash surrender value of bank-owned life insurance			86				77				78				72				87
Other			296				317				457				479				458
Total noninterest income			3,918				4,519				4,757				4,692				5,035
Noninterest Expenses:
Salaries and employee benefits			6,222				6,403				6,118				5,753				5,734
Occupancy and equipment			1,212				1,109				1,273				1,092				1,182
Data processing			708				694				689				641				591
Debit card processing and issuance			513				533				489				503				425
Advertising and marketing			108				115				141				70				99
Amortization of intangibles			96				95				96				96				104
Professional fees			389				436				434				399				390
Office Supplies			86				127				74				93				77
Telephone			140				143				139				144				141
Other			697				850				865				673				968
Total noninterest expenses			10,171				10,505				10,318				9,464				9,711
Income before income taxes			3,404				3,639				4,210				5,392				4,542
Provision for income taxes			785				728				988				1,337				1,112
Net income		$	2,619			$	2,911			$	3,222			$	4,055			$	3,430

Key Ratios
Basic Earnings Per Common Share		$	0.92			$	1.02			$	1.13			$	1.30			$	1.02
Diluted Earnings Per Common Share			0.92				1.02				1.13				1.30				1.02
Dividends Per Common Share			0.12				0.11				0.11				0.11				0.11
Book Value Per Common Share			30.59				35.50				35.29				34.97				32.95
Tangible Book Value Per Share			26.58				31.41				31.17				30.81				29.40
Tangible Book Value Excluding AOCI Per Share			31.27				30.64				29.64				28.56				27.98
Number of Shares Outstanding			2,873,528				2,848,078				2,848,078				2,842,828				3,359,613
Average Number of Shares Outstanding			2,864,082				2,848,109				2,848,109				3,118,265				3,372,684
Net Interest Margin (1)			3.13	%			3.12	%			3.11	%			3.37	%			3.52	%
Efficiency Ratio (1)(2)			74.35	%			73.75	%			70.70	%			63.28	%			65.53	%
Return on Assets			0.80	%			0.89	%			0.96	%			1.26	%			1.16	%
Return on Common Equity			10.82	%			11.41	%			12.57	%			15.74	%			12.44	%

(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of net interest income, net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.

(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on an TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on interest on tax-exempt securities, loans, and the increases in cash surrender value of bank-owned life insurance.

(UNAUDITED)		As of
		March 31,				December 31,				September 30,				June 30,				March 31,
		2022				2021				2021				2021				2021
						(Amounts in thousands, except per share data)
Cash and due from banks		$	13,413			$	10,846			$	16,536			$	16,418			$	15,108
Interest-bearing deposits in banks and other			42,103				57,882				104,722				140,073				50,199
Securities			484,420				506,894				472,472				448,072				379,187
Net loans/leases			716,456				698,877				658,323				666,738				700,399
Goodwill and core deposit intangible			11,536				11,628				11,723				11,819				11,914
Other assets			62,715				55,428				54,218				53,629				50,826
Total assets		$	1,330,643			$	1,341,555			$	1,317,994			$	1,336,749			$	1,207,633
Deposits		$	1,199,627			$	1,197,041			$	1,169,085			$	1,188,997			$	1,068,197
Subordinated debentures			19,812				20,155				20,155				20,155				5,155
Senior secured term note			10,889				11,278				11,667				12,056				12,445
Borrowings			5,000				5,000				5,000				5,000				4,000
Other liabilities			7,414				6,985				11,585				11,131				7,138
Stockholders' equity			87,901				101,096				100,502				99,410				110,698
Total liabilities and stockholders' equity		$	1,330,643			$	1,341,555			$	1,317,994			$	1,336,749			$	1,207,633

ASSET QUALITY DATA
(Amounts in thousands)		March 31,				December 31,				September 30,				June 30,				March 31,
		2022				2021				2021				2021				2021
Non-accrual loans		$	4,983			$	5,430			$	7,827			$	8,228			$	6,361
Accruing loans past due 90 days or more			-				-				-				-				-
Troubled debt restructures - accruing			1,802				1,843				1,975				1,958				1,996
Total nonperforming loans		$	6,785			$	7,273			$	9,802			$	10,186			$	8,357
Other real estate owned			75				24				-				-				-
Total nonperforming assets		$	6,860			$	7,297			$	9,802			$	10,186			$	8,357
Total loans		$	727,451			$	710,002			$	669,547			$	677,967			$	711,515
Allowance for loan losses			10,995				11,125				11,224				11,229				11,116
Loans, less allowance for loan losses		$	716,456			$	698,877			$	658,323			$	666,738			$	700,399
Nonperforming Assets to total Assets			0.52	%			0.54	%			0.74	%			0.76	%			0.69	%
Nonperforming loans to total loans			0.93	%			1.02	%			1.46	%			1.50	%			1.17	%
Allowance for loan losses to total loans			1.51	%			1.57	%			1.68	%			1.66	%			1.56	%
Allowance for loan losses to nonperforming loans			162.0	%			153.0	%			114.5	%			110.2	%			133.0	%

		For the Quarter Ended
		March 31,				December 31,				September 30,				June 30,				March 31,
ROLLFORWARD OF ALLOWANCE		2022				2021				2021				2021				2021
Beginning Balance		$	11,125			$	11,224			$	11,229			$	11,116			$	10,764
Provision			-				-				-				-				500
Loans charged off			214				181				103				61				582
Loan recoveries			84				82				98				174				434
Net charge-offs			130				99				5				(113	)			148
Ending Balance		$	10,995			$	11,125			$	11,224			$	11,229			$	11,116

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
ANALYSIS of AVERAGE BALANCES & TAX EQUIVALENT INTEREST RATES

Average Balance Sheet with Resultant Interest and Rates

(Dollars in thousands - unaudited)
(Yields on a tax-equivalent basis) (1)

		For the Quarter Ended
		March 31, 2022												December 31, 2021												March 31, 2021
		Average								Average				Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Interest Earning Assets:
Interest-bearing deposits and other		$	48,261			$	24				0.20	%		$	61,530			$	33				0.21	%		$	74,108			$	41				0.22	%
Investment securities:
Taxable investment securities			448,643				2,068				1.87	%			447,836				1,960				1.74	%			320,740				1,721				2.18	%
Tax-exempt investment securities			53,820				365				3.50	%			52,749				369				3.57	%			52,122				384				3.83	%
Total Investment securities			502,463				2,433				2.04	%			500,585				2,329				1.93	%			372,862				2,105				2.41	%
Loans			714,666				7,808				4.43	%			674,818				7,876				4.63	%			685,654				8,155				4.82	%
Total Earning Assets		$	1,265,390			$	10,265				3.32	%		$	1,236,933			$	10,238				3.32	%		$	1,132,624			$	10,301				3.73	%
Allowance for loan losses			(11,136	)											(11,192	)											(11,075	)
Cash and due from banks			14,956												16,557												16,052
Other assets			65,912												62,310												58,706
Total Assets		$	1,335,122											$	1,304,608											$	1,196,307
Interest Bearing Liabilities:
Interest bearing checking accounts		$	313,986			$	139				0.18	%		$	308,166			$	116				0.15	%		$	284,527			$	161				0.23	%
Savings and money market deposits			423,755				68				0.06	%			423,311				77				0.07	%			356,615				84				0.10	%
Time deposits			77,755				115				0.60	%			78,625				126				0.64	%			81,807				170				0.84	%
Total interest bearing deposits			815,496				322				0.16	%			810,102				319				0.16	%			722,949				415				0.23	%
Subordinated debentures and notes			20,037				195				3.94	%			20,155				196				3.85	%			5,155				41				3.23	%
Borrowings			16,071				91				2.29	%			16,306				98				2.40	%			26,369				127				1.96	%
Total Interest-Bearing Liabilities		$	851,604			$	608				0.29	%		$	846,563			$	613				0.29	%		$	754,473			$	583				0.31	%
Interest Rate Spread											3.03	%											3.03	%											3.42	%
Noninterest checking accounts			378,414												349,482												322,667
Other liabilities			6,899												7,342												7,373
Total liabilities			1,236,917												1,203,387												1,084,513
Total Stockholders' equity			98,205												101,221												111,794
Total Liabilities and
Stockholders' Equity		$	1,335,122											$	1,304,608											$	1,196,307
Net Interest Income/Margin						$	9,657				3.13	%						$	9,625				3.12	%						$	9,718				3.52	%

(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.

SOURCE: Blackhawk Bancorp, Inc.

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https://www.accesswire.com/698192/Blackhawk-Bancorp-Earns-262-Million-in-First-Quarter-2022-First-Quarter-Results-Highlighted-by-Strong-Loan-Growth

FAQ

What was Blackhawk Bancorp's net income for Q1 2022?

Blackhawk Bancorp reported a net income of $2.62 million for Q1 2022.

How did Blackhawk Bancorp's diluted EPS change in Q1 2022?

Diluted EPS for Blackhawk Bancorp decreased to $0.92 in Q1 2022.

What factors contributed to the decline in Blackhawk Bancorp's net income?

The net income decline was attributed to a $503,000 drop in income from mortgage loans and increased operating expenses.

How much did Blackhawk Bancorp's total deposits grow by in Q1 2022?

Total deposits grew by $131.4 million to $1.20 billion in Q1 2022.

What challenges does Blackhawk Bancorp face in its growth outlook?

The company remains cautious due to inflation concerns and the possibility of a recession impacting loan growth.